New Jersey Assembly Bill A1733

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Prohibits investment by State of pension and annuity funds in, and requires divestment from, 200 largest publicly traded fossil fuel companies.

Impact

The enactment of A1733 will directly influence the investment strategies of New Jersey's public pension funds, redirecting financial resources away from fossil fuel companies towards potentially more sustainable investments. This legislative change acknowledges climate change as a significant threat and positions the state to align its financial activities with broader environmental goals. Additionally, financial reports will be required to track the progress of divestments, ensuring transparency and accountability in the implementation of the bill.

Summary

Assembly Bill A1733, proposed in New Jersey, aims to prohibit state pension and annuity funds from investing in the 200 largest publicly traded fossil fuel companies. This legislation mandates that the state must divest from these companies due to their significant carbon emissions and contributions to climate change. The bill specifies a timeline for divestment, requiring all coal company investments to be sold within two years and all other fossil fuel investments by January 1, 2022. It emphasizes the state's commitment to addressing climate change and its fiduciary responsibilities concerning public funds.

Contention

Notable points of contention surrounding A1733 include concerns raised by stakeholders regarding the impact of such divestments on financial returns for pensioners. Opponents argue that divestment could lead to reduced performance of pension funds and potentially jeopardize the financial security of retirees. Moreover, there is debate over whether the legislation sufficiently considers the economic implications for the state's overall investment strategy, particularly in light of global energy market fluctuations.